Are you in the market to purchase a home today?
Chances are you are going to be looking at a great many short sale properties, or not looking at much at all. Because it is all but unavoidable these days here are some things you should know.
If you are willing to wait and work with the listing agents you can get a really great deal on a short sale. The first step is submitting an offer they can work with. This involves having your agent contact the listing agent to make sure you make an offer that is what they are looking for. Most agent will only submit 1 offer to the bank and keep the rest as back ups in case the first falls through. More than they are looking for a winning bid t this point they are looking for a buyer who isn’t going to walk away.
Your agent should be contacting the listing agent regularly to see if there are any updates or anything that you should be doing while you wait for bank approval.
When the bank approves the short sale the listing agent will usually counter your offer with the conditions the bank is requesting on price and terms. If you agree to this you will enter escrow.
THIS is where things can get very messy. Many agents got the short sale by tip toeing around the seller. When it comes to getting paperwork signed and moving out your agent needs to be sure they are addressing these issues. You want to know when the homeowner will be moving, do they have a place to go and a firm move out date? It can be hard to pin the sellers down as it is often only now hitting them that they really are losing their home.
Be sure to purchase a home warranty in case something goes wrong and the seller does not leave quietly so you are not stuck with a trashed property. But more importantly, if the sellers have a firm move out date, even if it is beyond the original closing date, you may be able to extend the escrow period so that you are not closing with them in the house. Evicting the sellers can be a nightmare.
All this may sound very intimidating but short selling is far from over. The most important thing for a buyer is to make sure your agent is cooperative but still aggressive and can handle the sale. My motto is that an agent who isn’t working for you is working against you.
